Bukit Asam to spend $580 million for infrastructure

State owned coal mining company PT Tambang Batubara Bukit Asam Tbk (PTBA) will allocate up to US$580 million in its budget until 2016 to finance development of infrastructure facilities including coal-fired power plants, railroad and ports.

PTBA?s President Director Milawarma said in Jakarta on Wednesday that this year alone, the company would spend about $150 million for the construction of power plants, railroads and ports. ?The infrastructure projects are financed by internal funds,? he added.

He said that the spending for the construction of the infrastructure facilities would reach $180 million in 2013 and would be further increased to reach $200 million in 2014. In 2016, the total funds for infrastructure projects would reach about $580 million, he added.

These railroad power plant and port projects were scheduled for completion in 2014, 2016 and 2017.

According to him, PTBA is currently completing the construction of a coal-fired power plant with a capacity of 3 x 310 megawatt. ?The project has almost 100 percent completed. When the new plant begins operation, we will no longer use power supply from PLN,? he added.

In addition, PTBA plans to build two other coal-fired power plants near its mining areas as part of PLN?s fast track power plant development program. The power from the two plants will be sold to PLN cope with the electricity shortage in Sumatra.

One of the two power plants, which has a capacity of 110 MW, is now under construction and is scheduled to begin operation in 2014. The other one which will have a capacity of 2 x 260 MW is now under preparation.

Bukit Asam, which operates coal mines in Tanjung Enim, South Sumatra, is also expanding railroad for its coal transportation to its coal terminal in Lampung, as well as expanding its coal ports. (*)